On the risk of delisting of ordinary shares of Cara Therapeutics, Inc. (CARA)
The International Trading System Limited (hereinafter – ITS) hereby informs on the delisting risk of ordinary shares of Cara Therapeutics, Inc. (ISIN US1407551092, hereinafter – Shares, QI) from The NASDAQ Stock Market LLC (hereinafter - Nasdaq).
Information on delisting risk of ordinary shares by Nasdaq
On November 22, 2024 the Company submitted Current report Form 8-K to The United States Securities and Exchange Commission (hereinafter – SEC). According to the report, on November 19, 2024, the Company received a written notice from Nasdaq notifying the Company that it was not in compliance with the minimum stockholders’ equity requirement set forth in Nasdaq Listing Rule 5550(b)(1),because the Company’s stockholders’ equity of $707,000 was below the required minimum of $2.5 million, and because the Company did not meet either of the alternative compliance standards, relating to market value of listed securities of at least $35 million or net income from continuing operations of $500,000.
The Company has 45 days from receipt of the Notice to submit to Nasdaq a plan to regain compliance with the Stockholders’ Equity Requirement. If Nasdaq accepts the Company’s plan, Nasdaq may grant an extension of up to 180 calendar days from the date of the Notice for the Company to evidence compliance.
As previously disclosed, on February 1, 2024 the Company received a notice from Nasdaq indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2), as the minimum bid price of the Company’s common stock had been below $1.00 per share for the last 30 consecutive business days.
Information regarding possible actions to be taken by ITS Ltd.
ITS conducts regular monitoring of the relevant information disclosed by the Company. Delisting of the Shares by Nasdaq will be considered to constitute a breach of the ITS Regulations on admitting financial instruments to trading and result in termination of trading in the QI on ITS.